Comments on: Second Tier Smart Phone Makers Likely To Struggle With Profitability

By: Bobby Kolev

Bobby Kolev — Sat, 23 Jan 2010 05:28:57 +0000

@Jing – Palm has a huge investment in WebOS and as such is not an appropriate target for anyone already having their own OS, namely Apple, Microsoft, Google, RIM and Nokia.

Except at sell-off prices, maybe, in which case all of the above may be potentially interested.

Amazon…is an interesting idea. I don’t know if Palm will like to be bought just for the WebOS, though. They already tried that once and it didn’t play well :-)

While of course surprises are possible for the time being I just don’t see where they would come from and as such any holds on the stock are more speculation than valuation.

In regards to this I am fully with Chad’s decision, even if it turns out incorrect.

By: Chad Brand

Chad Brand — Sat, 16 Jan 2010 15:53:53 +0000

Jing,

I agree with you that Palm is worth more to a competitor than on a stand-alone basis. The only thing that may hold them back from selling would be the certainty that the team they have assembled would be untouched post-deal. Personally, buyout potential is not a good enough reason to hold a stock, but I agree that the premium would be large if both parties were amenable to the idea.

By: Jing Liang

Jing Liang — Fri, 15 Jan 2010 21:01:16 +0000

Hi Chad,

Long time reader here. I think the strategic value of PALM can not be underestimated. While the google android is turning up the pressure on PALM, it makes its assets (mainly its OS, but also the new Palm Pre plus, etc) even more valuable to strategic buyers as they know they are running out of time.

I would argue that Palm WebOS is a much better OS than android and blackberry. It was designed by ex-apple engineers. On the hardware side, Palm Pre is the closest to the iPhone in terms of ease of use and functionality. If you check out the new Palm Pre Plus, its even better (e.g., use as a wifi hub). Don’t forget the CEO of PALM is ex-apple. If anyone is most adapt at anticipating Apple’s next move, it would be JOn Rubenstein.

I have checked out the Google Nexus One. It’s okay, but I don’t think it’s anything spectacular. With the exception of Gmail, it’s not in the same league as my iPhone. It is much better than my company issued blackberry.

Acquisition of PALM by RIMM, MSFT, NOK, MOT, and even Amazon (to make its Kindle more competitive with Apple’s upcoming tablet) would instantly give them a leg up on the smartphone market. My bet will be on RIMM or MSFT if they can get pass the sunk cost mentality of their own mobileOS

My prediction is that Palm will get acquired this year. Too many strategic buyers and the willingness to sell by Palm – Elevation Partners must want to have something to show for their relatively new fund.

By: Chad Brand

Chad Brand — Tue, 22 Dec 2009 23:09:23 +0000

Don’t you think it is pretty much a foregone conclusion that Verizon get the iPhone sometime in 2010? That seems to be the consensus view and would be huge for Apple.

By: Brendan

Brendan — Tue, 22 Dec 2009 22:07:01 +0000

I will still stick by the fact that Motorola’s Droid continues to be overlooked and the world seems to initially flock to the smartphones such as Apple and Blackberry. In another year when the next version of the Droid comes out, people will begin to see that Motorola is still here, that people enjoyed their product, word spread and their customers will be back for more. The larger-sold smart phones are still enjoying their the result of successful marketing over the course of 5+ years and a long-lasting model which has become a household name.

Unless Verizon gets the iPhone, I wouldn’t count MOT out just yet.